EADS Would Have To "Express An Intention To Compete"
The Defense Department has informed companies interested in
bidding on the KC-X aerial refueling tanker contract that, if the
European Aeronautics Defense and Space Co. formally expresses an
intention to compete, the bidding deadline would be extended 60
days, Pentagon Press Secretary Geoff Morrell said Wednesday.
"We are committed to a fair, open and transparent competition in
order to get the best airplane to our warfighters at the best value
to the taxpayers," Morrell announced in a late-afternoon news
conference here.
Officials announced the final request for proposals, the Air
Force requirements for the refueling tanker and a May 10 deadline
last month. EADS recently expressed interest in the contract and
requested a 90-day extension. "It is not uncommon to grant a
reasonable extension in competitions of this sort, and we consider
60 days to be reasonable," Morrell said.
The extension would give EADS and the Boeing Co., another
company that has expressed interest, to submit their proposals by
July 9. Morrell also noted that the Pentagon is prepared to
expedite the bid evaluation process to ensure production of the
tanker begins in early fall. "Given that this plane is long
overdue, and we do not want its delivery date to slip later than it
already has, we are prepared to compress our bid evaluation period
to stay as close to the original award schedule as possible so as
to still award the contract early this fall," he said.
T
he extension should not be confused with a "willingness to
change any of the plane's military requirements or the way bids
will be evaluated" in the future, he added, stressing that local
and international politics did not influence the decision.
"Politics are not a part of this process --never have been, [and]
never will be," he said. "We are basing this strictly on the needs
of the warfighter, the law of the land, and our desire to make sure
that the taxpayers get their money's worth."
The Air Force KC-135 modernization program contract is estimated
to be worth $35 billion.
EADS has acknowledged the Air Force statement, but says it would
require at least 90 days to prepare a bid. The international news
service AFP reports that EADS North America spokesman Guy Hicks
said in a statement the company would consider the 60 day
extension, but "We have firmly indicated that a 90 day extension
would be the minimum time necessary to prepare a responsible
proposal."
In a statement on the Boeing website, the company says it is
"deeply disappointed with EADS-Airbus efforts to further delay this
vital warfighting program and tilt the U.S. procurement process in
its favor. EADS-Airbus has been fully engaged in the competition
for four years and was always expected to provide the vast majority
of its team’s work content.
“We welcome the denial of EADS’s repeated requests
to alter U.S. warfighting requirements, and we support the Air
Force’s stated intent to provide a level playing field for
qualified competitors. We do not see a legitimate reason for
EADS’s bid deadline extension request, and we believe an
extension that favors any individual competitor does not further
the goal of ensuring fair competition.
“Boeing remains fully prepared to submit a competitive
proposal by the May 10 deadline originally set by the Air Force.
However, this latest development, along with the World Trade
Organization’s recent final ruling that Airbus has been
heavily and illegally subsidized for decades, requires Boeing to
review all of our options for going forward while we wait for a
final determination on a deadline extension.”
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